West Fraser Purchases Norbord For $3 Billion

West Fraser Purchases Norbord For $3 Billion

West Fraser Timber Co. Ltd. is acquiring all of the outstanding common shares of Norbord, the world’s largest oriented strandboard producer, for $3.1 billion. Following closing, the combined company will operate as West Fraser.

“Norbord’s OSB production is a perfect complement to the West Fraser portfolio, enabling us to deliver a wider range of wood products, and making us a more complete, efficient and valuable partner for our customers,” says Raymond Ferris, President and CEO of West Fraser.

Norbord operates 17 plant locations in the U.S., Europe and Canada, encompassing 15 OSB mills, one MDF plant, two particleboard facilities and a furniture plant.

West Fraser operates 34 sawmills in British Columbia, Alberta and the Southern U.S., as well as three plywood operations and two MDF facilities in Western Canada.

West Fraser will continue to be led by Ferris as CEO and Chris Virostek as CFO. Peter Wijnbergen, President and CEO of Norbord, will be appointed President, Engineered Wood, responsible for the company’s OSB, plywood, particleboard, MDF and veneer operations. Sean McLaren, currently West Fraser’s Vice-President, U.S. Lumber, will be appointed President, Solid Wood, responsible for all of the company’s lumber operations.

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LIGNA 2019: Showcases And Events For The Primary Wood Industry

Next year, from 27 to 31 May, the world’s leading trade fair for woodworking and wood processing plant, machinery and tools will present a wealth of innovations and applications for the entire wood industry. LIGNA 2019 will occupy some 130,000 square meters (1.4 million sq. ft.) of net display space, spread across 10 exhibition halls and the open-air site at the Hannover Exhibition Center. The primary wood industry is an integral part of LIGNA and will feature prominently in halls 25, 26, 27 and on the open-air site. “All the leading providers of plant and machinery for the primary wood industry have already registered for LIGNA 2019,” said Christian Pfeiffer, Deutsche Messe’s Global Director LIGNA & Woodworking Events. “That’s all the big names in sawmill technology, machinery for wood based panel production, technology for custom and mass production involving the processing of solid wood, wood energy technology and, of course, forestry technology. And I’m especially pleased to announce the premiere of a new sawmill technology group pavilion from Latvia, in Hall 25.”

At LIGNA 2019, providers of plant, machinery and equipment for the primary wood industry will feature at numerous showcases and events that go well beyond standard exhibitions:

Guided Tour On “Sawmill Technology – Innovations and Trends”

In 2019, for the very first time, LIGNA will offer a Guided Tour (in German and English) for visitors with an interest in sawmill technology. Faced with dwindling wood resources, sawmill operators are increasingly looking for technologies that enable them to efficiently process sawn timber into value-added products. Manufacturers of sawmilling machinery are rising to this challenge with new high-tech, high-efficiency systems for maximizing sawn timber yield and detecting key characteristics in individual timbers and logs. Hence this tour, which focuses on sawmilling technologies and processes, including the following: machinery for all log applications, whether cut-to-length or uncut, large or small-diameter, plus systems ranging from high-performance to small and versatile, to custom-optimized; machine tools for primary wood processing; machines for tool making and tool maintenance; the full range of timber logistics and log yard products and solutions; machinery for handling, sorting and packaging; measurement technology for all applications; drying technologies for all applications; and energy plant and waste wood utilization technologies for sawmills.

Wood Industry Summit and “Future Workshop For Forestry & Wood” – The innovations platform for the forestry and wood industry

“Access to Resources and Technology” is the focus theme for the 3rd Wood Industry Summit, which will be held in Hall 26. Organized by Deutsche Messe in partnership with the German Forestry Council (KWF), it is an international dialogue and technology showcase comprising a forum, lounge and exhibition area. Its purpose: to help visitors access new growth markets. For the first time, the summit will also feature the “Future Workshop for Forestry & Wood” showcase – a group pavilion for startups that is inspired by the German government’s “Charter for Wood 2.0” policy.

14th German Logging Championship

In 2019, for the first time, Deutsche Messe and the German Woodsmen’s Championships Association (VWMD) will be co-staging the German Logging Championships – the “Formula 1” of forestry skills – on the open-air site at LIGNA. At the 14th German Logging Championship, Germany’s best 100 or so forestry professionals will demonstrate their chainsaw skills under the watchful eye of an expert panel of judges. The contestants’ endurance, handling skills and precision will be put to the test in five disciplines: tree felling, chain fitting, combined cut bucking, precision bucking and delimbing.

Outdoor demonstration site for forestry technology

The outdoor demonstration site premiered successfully in 2017 and is back again for LIGNA 2019. It is a dedicated area where the latest forestry machines and technology developments are shown in action – all under careful expert moderation.
The outdoor site is organized in partnership with the German Forestry Council (KWF) and will be located in the middle of the German Logging Championship area. It will feature moderated technology demonstrations on each day of the show.

KWF Business Pavilion – Tomorrow’s forestry technology today

2019 will mark the ninth time that the German Forestry Council (KWF) is spearheading this special forestry technology presentation at LIGNA. Held in Pavilion 33 beneath the iconic EXPO canopy, the unique, technology-centric forestry industry meeting hub is organized by KWF with input from the German Association of Forestry Contractors (AFL) and the Lower Saxony Forestry Service (as represented by the Lower Saxony School of Forestry – NFBz). It is aimed at forestry companies and takes a manufacturer-neutral look at key forestry issues and challenges.

Among the featured topics are:
Forestry 4.0: In today’s forestry industry, digitization starts among the trees, with all processes, from crop to log yard, now fully integrated. Large scale machines, such as harvesters and forwarders, now have onboard computers and are networked with each other. This is Forestry 4.0, a topic that will also be covered by the displays on the open-air site in front of the pavilion. Highlights here include displays of log-yard data flows and data processing. There will also be displays of technologies dedicated to hazard detection and prevention, safety and rescue for forestry workers. Topics here include “Natural Disasters in the Forest”, “Precision Forestry” and “Forest First-aid and Survival”.

Battery-powered machinery in professional forestry:
Thanks to research in the automotive and energy industries, rechargeable batteries are steadily becoming smaller, more affordable, more powerful, longer-lasting and less maintenance-intensive. These developments are now flowing through into forestry work methods and technologies. Pavilion 33 is about keeping the forestry industry informed of the latest issues and developments. The displays and exhibits on the pavilion’s lower level will be supported by quality discussion forums on the upper level.

Showcase by North Rhine-Westphalia Forestry Service

The group display that the North Rhine-Westphalia Forestry Service is staging in one of the pavilions beneath EXPO canopy next year will explore innovations for sustainable forest management and focus on the further development and digital integration of work processes across the entire primary wood industry value chain. The main topic highlights include resource efficiency in the use of forestry machines and the development of new digital training systems for operators of forestry machinery.

Energy From Wood

The wood industry uses a lot of energy, so efficiency and cost reduction are key priorities. The good news is that wood industry plant operators can achieve major cost reductions and efficiency gains by generating their own power from their own waste wood, chips and sawdust, and by utilizing waste heat and harnessing cogeneration. The Energy from Wood showcase at LIGNA 2019 will show them how. Located in halls 25 and 26, on the open-air site and in pavilions 32, 33 and 35, the showcase will present technologies that wood-industry manufacturers can use to recover process energy and re-use it for heating and electric generation.

“Firewood Production Line” Showcase

The “Firewood Production Line” showcase will be back in 2019 with another comprehensive line-up of exhibits, demonstrations and guided tours dedicated to renewable energy from wood. The program will span all the latest trends, developments and solutions. That’s everything from firewood processing to furnaces and everything else in between.

LIGNA Forestry Get-together

The Forestry Get-together premiered successfully in 2017 as LIGNA’s primary meeting hub for forestry-industry networking and dialogue and will be back again in 2019. Organized by the German Association of Forestry Contractors (AFL), the LIGNA Forestry Get-together will be staged directly in front of Pavilion 33, under the EXPO canopy.

13th Lower Saxony Crane Driving Championships and 4th Women’s Crane Driving Cup

Among the more spectacular events on the open-air site are the Lower Saxony Crane Driving Championships and the Women’s Crane Driving Cup. Held on the Thursday of LIGNA, they offer a thrilling mix of big-machine mastery, sport and entertainment. These two must-see events are organized by the Lower Saxony School of Forestry, Münchenhof, and the German Association of Forestry Contractors (AFL), with support from Deutsche Messe.

USNR Expands Oregon Veneer Operation

USNR is expanding its operations in Eugene. The investment moves the existing operation to a new, expanded building that will be outfitted to meet the growing needs of USNR’s business.

The Eugene location is home to a team that supports and advances optimization and veneer handling activities. It is the U.S. base for USNR’s optimization technology, from hardwood, shop and moulding, and green lumber grade scanning, to veneer scanning and grading. From logs to lumber and blocks to dry veneer, the Eugene team has a key role in the development of innovations for the solid wood and engineered wood industries.

The new location encompasses more than 60,000 square feet, situated on 3.2 acres. The majority of the space will house electrical manufacturing, with the remainder for engineering, R&D and training facilities, warehousing and sales offices. The new location is expected to be operational in January 2019.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/usnr-expands-oregon-veneer-operation

More Record-Level Lumber Prices Expected In 2018 From U.S. Import Duties

In WOOD MARKETS’ new five-year softwood lumber forecast, the continuation of U.S. duties on Canadian lumber exports to the U.S. are expected to cause more short-term market and price volatility. The preliminary duties launched earlier in 2017 rocked the U.S. market and more of the same is expected in 2018. As we predicted one year ago, the headline for last year’s WOOD MARKETS 2017 news release was bang on: “U.S. Import Duties on Canadian Lumber to Cause Market Chaos and Soaring Prices.” Indeed, they did. The WOOD MARKETS 2018 Outlook Report predicts more chaos and the chance of further record-breaking prices.

These details and further analysis of commodity lumber and structural panels was released earlier this week in the report, WOOD MARKETS 2018 – The Solid Wood Products Outlook: 2018 to 2022 by WOOD MARKETS/FEA Canada, Vancouver BC.

The recent announcement of final countervailing (CVD) and anti-dumping (ADD) duties on Canadian lumber exports to the U.S. will cause lumber prices to remain near record levels in 2018 and even higher at various points over the next five years. This is because Canadian exports to the U.S. are forecast to ease in 2018.

“Simply put,” indicated Russ Taylor, Managing Director, WOOD MARKETS/FEA Canada, “by restricting incremental Canadian lumber exports via import duties, there may not appear to be enough lumber supplies to adequately balance with projected U.S. demand. There will need to major increases in U.S. lumber capacity (which is starting to build), more offshore imports, and/or record-level prices to stimulate more supply. The question that we have seen coming for a number of years is: Where will the U.S. get all of the lumber it needs, and at what price?”

The impact of U.S. import duties on Canadian lumber production and exports has been developed from building a cost curve of Canadian producing regions from WOOD MARKETS’ Global Timber/Sawmill/Lumber Cost Benchmarking Report. From this, WOOD MARKETS has overlaid a cross-Canada timber supply availability map with delivered log and sawmill costs to determine which producing regions (and mills) are most impacted by 20.23% (“all-others”) import duties.

Read more on this from International Wood Markets at https://www.woodmarkets.com/news-release-record-level-lumber-prices-expected-2018-u-s-import-duties/.